DODIX to replace cash holdings?

[JohnDoe]

I am thinking about replace my 15% cash position with a 10% position in DODIX. My portfolio is 75/25 with much of the 25% in cash earning .3%.

My goal is to beat my cash returns as safely as possible and this fund seems like a winner. What do you think?

Thanks.
JD

 

[brewer12345]

Yeah, sure, why not? After all, everybody knows that no one ever got burned chasing yield...

 

[LOL!]

This question comes up at least once a week on investing forums that I visit:

"Money markets are yielding nothing, so why not invest in a bond fund?"

Cash is not the same as a bond fund. If you need the safety of cash, then DODIX is not going to do that for you. You might select a short-term treasury bond fund as the next step up in risk, but you wouldn't select DODIX. If you didn't want the safety of cash, then why were you not already invested in the bond fund in the first place?

Another thread to read on this: Bogleheads :: View topic - On this quest for money market alternatives

 

[Bikerdude]

"I'm less concerned of the return on my money as I am of the return of my money"

Will Rogers